Use the Figure Below to Answer the Following Question(s)

question 36

Multiple Choice

Use the figure below to answer the following question(s) .
Figure 3-3
-In Figure 3-3, if the initial demand for margarine were D₁, the impact of an increase in the price of margarine from $0.35 to $0.40 per pound on consumer purchases would be illustrated as

• A) a shift in the demand curve to D₂.
• B) a shift in the demand curve to D₃.
• C) a movement upward to the left along the original demand curve D₁.
• D) none of the above.

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Definitions:

Labor Rate Variance

The difference between the actual cost of labor and the expected (or standard) cost, based on hours worked and pay rates.

Labor Efficiency Variance

The variance between the actual number of labor hours utilized and the anticipated standard labor hours for the achieved production volume.

Raw Materials Inventory

The stock of materials on hand that are used in the manufacturing process to produce goods.

Transaction (b)

Likely refers to a specific, numbered transaction within a set of financial records or accounting entries, without additional context provided.